Users of cryptocurrency derivatives protocol Synthetix passed the SIP-2043 bill to control the token’s inflation.
In line with the decision taken, in order to prevent inflation token buybacks and burns will be arranged.
Users staking on the Synthetix protocol therefore cause inflation, weekly token rewards won’t take it.
The Synthetix team developed these rewards as a tool to grow liquidity in the protocol, but inflation “began to become ineffective by receiving an incentive” decided to do so.
For this, SNX tokens will be purchased and destroyed using the funds provided from the transaction fees in the protocol.
The decision to prevent inflation had a positive impact on the Synthetix price. According to CoinGecko data, SNX appreciated by approximately 5% on a daily basis. up to $4.75 reached its highest level this year.